'MIDAS' COMMENTARY FOR SEPTEMBER 20, 2001 COPYRIGHT 2001, WWW.LEMETROPOLECAFE.COM By Bill Murphy www.LeMetropoleCafe.com September 20, 2001 What a great speech tonight by President Bush! I received a call from Europe this morning from someone involved in the gold physical market. If you want to buy 100 ounces of gold, the price is $300 to $303. The spreads between bid and asked were $20 yesterday, $12 today. The disconnect between the physical market and the paper market has begun. And there is no silver of any size for sale at all in Europe. * From Cafe member Pete S: "Went to a local coin shop yesterday for some eagles and learned that the random-dated ones (slightly cheaper) are not available for immediate shipment and are backordered for two- or three-week delivery. The 2001 issue is still available but the premium over spot has climbed to more than $20/oz versus about $12 a few weeks ago." * Great news for Newmont Mining. Newmont Climbing Higher Following Upgrade "RealTimeTraders.com: Newmont Mining Corp. (NEM) gapped down slightly this morning but has moved sharply higher. The stock is now up 0.44 at 23.24 on average volume. Newmont has been climbing higher for the last 2 weeks and is trading at nearly a 4-month high. The stock was upgraded today by Goldman Sachs from a 'market perform' to a 'market outperform.' Goldman Sachs? On the same day a super-gold bear (below) turns super-bullish? The day after Robert Rubin was in Washington meeting with Congress? * From John Brimelow: On the one hand, all the signs are acummulating that sophisticated GATA-orientated pessimists would expect: higher lease rates have been met with lending, "excellent selling ... located around $294- 5" in Standard London's words, MarketVane's Bullish Consensus up to a creepy 82 percent, indicating a frustrated speculator community, "There seems to be a cap around the $294-5 area," as Mitsui-Sydney puts it, and of course Comex volumes are up strongly, especially when the abbreviated session is factored in. On the other hand, physical demand in a number of sometimes quite surprising markets (such as Europe) continues strong -- "healthy more or less everywhere," the WGC report says. Macro events could hardly be more supportive (one hopes!), the gold share indices keep creeping up even on gold down days, and we have the significant if astonishing event of a well-known gold bear turning mega bullish. "This is the big one." "Environment like the '60s and 70s." "Close your eyes; buy gold." The fact is that this bear has been at least as good as anyone else in the past decade at forecasting gold prices, and he is clearly a great deal brighter than most in the field. At the very least, if gold does not rise, a new explanation should be forthcoming. In all the confusion, few have noticed the Pasminco bankruptcy in Australia. A major event, it appears this world-class zinc producer, which should have been protected from low zinc prices by the weak A$, was instead ruined by excessively clever currency hedging. A direct blow to the perpetrators, and a caution to producers. Bullion dealers report that few Australian gold miners are hedging into this close to record A$ gold price, in part due to credit constraints. -END- ------------------------ Yahoo! Groups Sponsor ---------------------~--> <FONT COLOR="#000099">Get your FREE credit report with a FREE CreditCheck Monitoring Service trial </FONT><A HREF="http://us.click.yahoo.com/MDsVHB/bQ8CAA/ySSFAA/WfTolB/TM";><B>Click Here!</B></A> ---------------------------------------------------------------------~-> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
